BOTAŞ and Total Sign 10-Year LNG Agreement

Making a statement after the signing ceremony, Minister Bayraktar mentioned that Türkiye is the 4th largest natural gas market in Europe with a consumption of 50-55 billion cubic meters and added: “We are creating a Turkish Blend by mixing gas from different sources in Türkiye. We are now in a position to offer this blend to customers in Europe, especially to countries in South Eastern Europe that need gas.”

The Goal is to Become a Natural Gas Center

Türkiye, which can store natural gas from different sources with its strong infrastructure, is making strategic moves towards its goal of becoming a natural gas hub. On the margins of the Gastech 2024 Fair and Conference in Houston, USA, an agreement was signed between TotalEnergies, a global energy company, and BOTAŞ. General Manager Abdulvahit Fidan of BOTAŞ and TotalEnergies LNG Senior Vice President Gregory Joffroy signed the agreement, accompanied by Minister Bayraktar.

Diversifying the Supply Portfolio

According to the agreement, TotalEnergies will supply 16 LNG cargoes of approximately 1.6 billion cubic meters per year starting in 2027. BOTAŞ will be able to take LNG delivery from filling ports in the US and some from terminals in Türkiye and Europe. The agreement will diversify Türkiye's natural gas supply portfolio. With these and similar agreements, BOTAŞ will gain additional operational and commercial capabilities and become stronger in the global market.

Long Term Agreements

Making a statement after the signing ceremony, Minister Bayraktar stated that they aim to procure natural gas from different sources and that they have invested in infrastructure accordingly and said, “With the investments we have made, today Türkiye has become able to purchase easily half of its annual gas needs in liquefied form. Our LNG cargo purchases, which we have only made on a spot basis until today, we have now spread over a long period with the agreements we have made here today.”

Covers 10 Years

Stating that Türkiye has become capable of receiving the gas it needs with its existing infrastructure, Bayraktar said that with the production in Sakarya Gas Field, international pipeline projects and LNG infrastructure, Türkiye's input capacity can easily meet approximately 80 billion cubic meters.

We Will Export the Rest to Europe

Bayraktar emphasized that Türkiye can export the remaining amount to Europe, considering that it is the 4th largest natural gas market in Europe with a consumption of 50-55 billion cubic meters and said, “We are creating a Turkish Blend by mixing gases from different sources in Türkiye. We are now in a position to offer this blend to customers in Europe, especially to countries in South Eastern Europe that need gas. We are currently exporting this gas to Bulgaria, Romania and Hungary. We will hopefully do this in larger quantities as BOTAŞ in Türkiye.”

New Agreements Possible

Explaining that they have created a gas portfolio by evaluating whoever offers more competitive, cheaper and more flexible contract terms, Bayraktar said, “Of course, there may be new agreements of this kind. We will continue to work to supply gas to our country from the cheapest source under the most competitive conditions.” 

4 Agreements in 4 Months

Bayraktar noted that the agreement with Total covers 10 years and said, “Starting from 2027, it includes the delivery of approximately 1.6 billion cubic meters of LNG to Türkiye every year for 10 years, totaling 16 cargoes. Therefore, when you look at the total, it is an agreement of 16 billion cubic meters.”

80 Billion Cubic Meters Capacity

With this latest agreement, Türkiye has signed 4 long-term agreements in the field of liquefied natural gas in the last 4 months. Last May, BOTAŞ reached an agreement with two different companies for the purchase of LNG for 10 years. In September, BOTAŞ and Shell agreed to deliver a total of 40 LNG cargoes of approximately 4 billion cubic meters per year for a period covering 10 years starting from 2027.